They were worth almost nothing when he purchased them in 2009. However, when he realized what he’d done, they were worth more than $4 million.

That’s why investing in a secure wallet and taking the time to learn about how Bitcoin works is essential in keeping your Bitcoins safe.

Satoshi Nakamoto, the unknown person or persons who designed Bitcoin back in 2009, built the network with certain measures to ensure its safety.

Decentralized

There are over ten thousand of nodes (computers) around the world that keep track of the Bitcoin ledger and validate transactions on the network. This is drastically different than the storage of data on centralized servers used in traditional finance, and when we look at the recent Equifax hack, it’s clear why storing private information on a centralized server is a huge risk.

Bitcoin uses a decentralized system as a preventative measure, which means that there’s not one single point of failure that a hacker could exploit to compromise the network. For this to even be possible, they would have to find a way to control 51% of the network nodes.

Pseudo-anonymity

When making a Bitcoin transaction or using a Bitcoin wallet, you don’t need to attach any personal or confidential information.

You’re at less risk of identity theft because your personal information isn’t attached to your wallet or transactions. Even if someone gets hold of your wallet’s private key, they won’t have access to your personal information, they’ll only have access to your funds.

Conclusion

The biggest threat to your Bitcoin investment is with the volatility of the price, and not with the network itself. However, the price should stabilize as more people begin to use Bitcoin and other blockchain technologies.

Like I said in the beginning, you should start by educating yourself, learn about the currency, what affects it, what are its advantages and disadvantages, because with proper education and correct storage practices to keep your Bitcoin safe, your funds are as secure as when using other financial channels (if not more secure).

CaptainAltcoin's writers and guest post authors may or may not have a vested interest in any of the mentioned projects and businesses. None of the content on CaptainAltcoin is investment advice nor is it a replacement for advice from a certified financial planner.
The views expressed in this article are those of the author and do not necessarily reflect the official policy or position of CaptainAltcoin.com

Torsten Hartmann has been an editor in the CaptainAltcoin team since August 2017. He holds a degree in politics and economics. He gained professional experience as a PR for a local political party before moving to journalism. Since 2017, he has pivoted his career towards blockchain technology, with principal interest in applications of blockchain technology in politics, business and society.